Law: Wealth Tax Act, 1957

Section: 27(2),7

Law: Land Acquisition Act, 1894

Section: 12(2)

Law: Income Tax Act, 1961

Section: 230A,16(3),17,11,80G

Wealth tax-----Reassessment---Failure to disclose material facts necessary for assessment---Information that wealth had escaped assessment---Audit objection---Land disclosed as being agricultural in wealth tax returns up to assessment year 1964-65---Income from lands assessed as agricultural income---Reassessment proceedings for assessment years 1965-66 to 1968-69 in 1975---No failure to disclose material facts necessary for assessment--­Reassessment proceedings under S.17(1)(a), Indian Income Tax Act, 1961 not valid---Reassessment barred by limitation under S.17(1)(b), Income Tax Act, 1961 for assessment years 1965-66 to 1967-68---Opinion of audit party did not constitute information---Reassessment proceedings for assessment year 1968-69 not valid---Indian Income Tax Act, 1961, S.17. The assessee was treating certain lands of an extent of 89 grounds as agricultural land and submitting wealth tax returns on that basis up to the assessment year 1964-65. The assessee had also shown the income from the abovesaid property, treating the same as agricultural land only at Rs. 300 to Rs. 400 per annum during the relevant assessment years and the same was accepted by the Income-tax Officer, though the assessee had described the demised land as vacant site in a trust. The land was acquired for construction of staff quarters of the Telephone Department by issuing notification under the Land Acquisition Act on December 29, 1969. In the report of the Special Deputy Tehsildar for Land Acquisition and also in the report of the Special Deputy Collector of [,and Acquisition, the land in question was described as "vacant ground and garden cultivation, apart from describing the same as "full field". It was also evident from the report of the abovesaid officers that there was a big well of 13 feet diameter and standing crops like paddy, vegetable plants, coconut, palmyrah and other trees like date, tamarind. murungai, mango, arinelli, kichili, sathukudi, papaya, etc. Reassessment proceedings were initiated and notice was issued by the Wealth Tax Office: in March, 1975, on -the basis of an audit note that the lands were not agricultural: The Tribunal held that the reassessment…

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